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Hedging against market uncertainty

 

In today’s market environment many investors are as equally interested in protecting assets as they are in generating returns. Having a strategy in place to hedge against potential market downturns can make sense, but predicting market turbulence - and timing hedges accordingly - can prove an almost impossible task.

PowerShares S&P 500 VEQTOR UCITS ETF seeks to manage this challenge. Employing a dynamic, rules-based methodology – which looks to identify market trends and indicate when and how it should adjust hedges – the index that this ETF is tracking seeks to generate positive returns in rising US equity markets with the intention to partially reduce potential losses in falling markets.

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A smoother path to US equity income?

A smoother path to US equity income?

Powershares new S&P 500 High Dividend Low Volatility ETF offers a unique blend of single factor strategies to help capture the performance potential of US equities – while seeking to reduce the volatility inherent in equity income investment.

The ETF aims to achieve a considered balance between dividend yield and volatility by providing exposure to 50 of the high yielding companies within the S&P 500 index while meeting clearly specified diversification, volatility and tradability criteria.

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Share Buybacks: A quality-factor strategy

What is a buyback programme?  How does it work?  Isn’t it just a US phenomenon?  Joe Becker, Invesco PowerShares Product Specialist, shares his insights on this potential investment opportunity and explains how an ETF can provide diversified exposure to this single factor strategy.

Why Invesco PowerShares?

Intelligent Indexing - Invesco PowerShares offers a selection of Exchange Traded Funds (ETFs) that track "next generation" indices: Indices that go beyond merely tracking a particular market.

Opening Quote We select indices that attempt to outperform markets through intelligent security selection and weighting."

Liquid solutions - Invesco PowerShares was founded in the US in 2003 on a vision of delivering investment performance through ETFs whose shares can be bought and sold on any business day.

Opening Quote We are building solutions that offer investors liquidity, transparency, and provide access to targeted markets."

Invesco Standards - Invesco PowerShares is a global ETF leader managing assets in excess of $100bn1 and acting diligently in its clients' interests.

1Source: Invesco, as at end March 2015.

Opening Quote We are part of INVESCO Ltd., an independent global investment management firm dedicated to helping people worldwide build their financial security."

Discover the Power of Share Buybacks

Access the potential benefits of share buybacks with PowerShares Global Buyback Achievers UCITS ETF. This ETF - a first-to-market in Europe - tracks an index* made up of companies which have repurchased a minimum of 5% of their outstanding shares. 

Why consider a share buyback ETF?

  • Companies buying back their own shares tend to be more profitable
  • Their management tend to be shareholder friendly
  • Their stock price is often below fair value
  • The move to repurchase stock can be viewed as a vote of confidence by management

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*The Nasdaq Global Buyback Achievers Net Total Return Index

 

ETFs on Fundamental Indices

In an interview with the London Stock Exchange, Bryon Lake, Head of Invesco PowerShares (EMEA), looks at ETFs that track Fundamental Indices. Bryon elaborates on the differences to traditional ETF products, the types of exposures that are available and the ways that investors and advisors are using these alternatively weighted ETFs.

FTSE International Limited and London Stock Exchange Group plc have given Invesco PowerShares the permission to host this video on this site.

 

Important information

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Where Invesco PowerShares has expressed views and opinions, these may change without notice.

The distribution and the offering of the ETF in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to who it is unlawful to make such an offer or solicitation. Persons interested in acquiring the ETF should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile: (ii) any foreign exchange controls: and (iii) tax consequences which might be relevant.

Any investment in an ETF should be made on the basis of the relevant Prospectus and Key Investor Information Documents, including consideration of the investment objective, risks, charges and expenses. Further information on the ETF, including the Prospectus, Key Investor Information Documents and Supplements available at www.powershares.net, from your local representative, financial adviser or broker.

The NASDAQ Global Buyback Achievers™ Index is a trademark of The NASDAQ OMX Group, Inc. and is licensed for use by Invesco PowerShares Capital Management LLC in connection with the PowerShares Global Buyback Achievers UCITS ETF (“the ETF”). The ETF is not sponsored or endorsed by The NASDAQ OMX Group, Inc. and The NASDAQ OMX Group, Inc. makes no warranty or representation as to the accuracy and/or completeness of the Index or results to be obtained by any person from use of the Index or the trading of the ETF.

In tracking the Index, the PowerShares' S&P 500 High Dividend Low Volatility UCITS ETF may be concentrated from time to time in a small number of sectors. ETF investors should be prepared to accept a higher degree of risk than for an ETF that is more widely diversified across different sectors.

The “S&P 500 Low Volatility High Dividend Index" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Invesco PowerShares. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Invesco PowerShares. The PowerShares S&P 500 High Dividend Low Volatility UCITS ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Low Volatility High Dividend Index.

The objective of PowerShares S&P 500 VEQTOR UCITS ETF is to provide broad exposure to the U.S. equity market with the intention to partially reduce potential losses in that market in line with the Index objective. It is not the intention of the Index to fully reduce all potential losses in the equity market. In addition, the hedging strategy used by the Investment Manager may not be totally successful when replicating the Index.

PowerShares S&P 500 VEQTOR UCITS ETF may use derivatives (complex instruments) to track the Index, although this may not be achieved. The use of such complex instruments may result in large fluctuations of the value of the ETF.

The “S&P 500 Dynamic VEQTOR Index" is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Invesco PowerShares. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Invesco PowerShares. The PowerShares S&P 500 VEQTOR UCITS ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Dynamic VEQTOR Index.

 
Issued by Invesco Asset Management S.A.

The price of ETFs and any income will fluctuate, this may partly be result of exchange rate fluctuations, and investors may not get back the full amount invested. Whilst an ETF will seek to track an Index, Invesco PowerShares does not guarantee that this will occur. Where Invesco PowerShares has expressed views and opinions, these may change without notice. When making an investment in an ETF you are buying shares in a company that is listed on a stock exchange.

Users of this site are advised to consult the general disclaimer regarding the information provided herein.